Cyprus’ Finance Minister, Makis Keravnos, expressed confidence that the European Commission will be able to respond to member states’ calls for a way out and additional spending through greater flexibility in economic governance, in statements upon his arrival at the ECOFIN meeting in Luxembour,g on Friday morning, adding that there is ” a very serious need for action, solutions, and support for our citizens and businesses.”
“We cannot remain in an economic governance framework that does not take into account inflation, which is rising rapidly at this time. I expect there will be an additional discussion and that a solution will be found,” the Minister said, adding that “expenditure and citizens’ needs are increasing in line with inflation,” as “armed conflicts are escalating and the energy crisis has reached its peak, threatening our households and businesses, not to mention democracy itself.”
On fiscal matters, he acknowledged that “there are countries with a different perspective on the issue, but they have said that there is a structural problem with the energy crisis, and I will not disagree. At some point the European Commission will have to look precisely at the structural dimension, the roots of this problem, and funds must be allocated not only to support household incomes but also to build the necessary infrastructure so that this energy issue is permanently addressed in the future,” he noted.
He also voiced support for the spirit of the letters from Greek and Italian PMs, Kyriakos Mitsotakis and Giorgia Meloni, to Commission President, Ursula von der Leyen. “The Prime Minister of Greece and the Prime Minister of Italy have sent a letter to the Commission President in this direction. The spirit of these letters points this way, and we support it,” he said.
Regarding Greece’s request, submitted in August, for further flexibility beyond defence, Keravnos assessed that “it is a proposal that can immediately ease the situation for some countries,” but “overall, this move does not appear to be sufficient on its own,” and “broader thinking will be needed on how we address the energy crisis.”
Asked by CNA whether there would be a qualified majority on a future governance model for the European Securities and Markets Authority (ESMA) with a view to single market supervision, the Minister replied that “the Irish Presidency has brought forward a good proposal, building on the proposal of the Cypriot Presidency, and we support this proposal, which is the result of a compromise that helps us reach a solution.” He assessed that Thursday’s discussion at the dinner following the Eurogroup was good, while acknowledging that some governance issues remain, on which he hopes a conclusion will be reached today.
On exemptions, he noted that the Irish Presidency’s proposal includes them, with the majority having accepted this arrangement. “So the most serious outstanding issue is the governance of ESMA,” the Minister said.